Workspace Provider Incuspaze gets $8 Mn Seed Funds

In its maiden fundraising round, workspace solution provider Incuspaze raised about $8 million, with the India Inflection Opportunity Fund (IIOF) and other financial institutions leading the charge.

According to a statement from the business, this strategic investment will strengthen Incuspaze’s capacity to offer premium workplace solutions to MSMEs, startups, and enterprises.

“This investment will greatly increase our capacity to offer premium workspace solutions to startups, MSMEs (micro, small, and medium-sized businesses), and enterprises. We want to dominate the Indian flexible workspace industry with our enterprise-focused strategy and transparent profitability matrix”, Incuspaze CEO Sanjay Choudhary.

“In a cutthroat business, Incuspaze has shown remarkable development and tenacity. Our investment is in line with our approach of supporting businesses that have a high likelihood of long-term growth and profitability,” India Inflection Opportunity Fund chief investment officer Madhu Lunawat.

The India Inflection Opportunity Fund (IIOF), a pre-IPO fund managed by Pantomath Financial Services Group, closed in November of last year for $60 million. Although Incuspaze has not disclosed its IPO aspirations, the strategic funding from the IIOF suggests a clear path for a public offering, given that the investment firm primarily backs IPO-bound businesses.

Related: Workspace Provider Smartworks Receives Rs 168 Crore Funding Led by Keppel Ltd

The eight-year-old company, headed by Sanjay Choudhary, wants to grow its clientele in southern India, concentrating on Bengaluru, Chennai, and Hyderabad. Its principal customers include PhonePe, Byju’s, Flipkart, and Girnarsoft, among others.

According to Incuspaze, it has a 3 million square foot portfolio spread across 18 cities and 44 sites. The company just leased 220,000 square feet in the M3M Urbana project in Gurugram.

Recently, the company leased 220,000 square feet of premises on Golf Course Extension Road in Gurgaon’s M3M Urbana project.

The deal came after the business leased 600,000 square feet in three cities during the June quarter as it proceeded to grow in response to increasing demand.

Incuspaze reported a more than three-fold increase in operational revenue to Rs 50 crore for the fiscal year ending in March 2023 (FY23) compared to Rs 14.84 crore in FY22. It was able to reduce losses from Rs 5 crore to Rs 98 lakh in FY23. The annual report for Incuspaze’s most recent fiscal year (FY24) has not yet been submitted.

Property consulting firm Colliers said in June 2024 that demand for flexible office space in India’s top six cities reached an all-time high during the April–June quarter. Alone, Bengaluru and Delhi-NCR supplied 65% of the total demand.

Awfis is the first Indian startup to list on the stock exchange in the co-working space. Smartworks, a different co-working startup, just become a public business and moved closer to becoming a possible public listing.

The world’s flexible office market is expanding at the fastest rate in India. According to industry observers, the sector is expected to acquire more traction due to growing demand from a variety of segments, including large corporations, the developing startup ecosystem, and global capability centers setting up shop in India for research and development.